Forex news for Asia trading on Friday 24 September 2021
- Stan Chart says Evergrande is trouble in just one sector of the Chinese economy - otherwise China still very strong
- China state planner hints at more action to combat commodity price rises
- There is a busy agenda of Federal Reserve speakers on Friday - Powell, Clarida
- Japan's economy minister Nishimura says welcomes Taiwan's application to join trade pact
- The IMF has cut Australia's 2021 growth forecast, raised the 2022 outlook
- There has still been no word from Evergrande on its USD83m coupon payment due
- PBOC sets USD/ CNY mid-point today at 6.4599 (vs. estimate at 6.4595)
- A US Congress committee will meet on Saturday re the reconciliation bill
- Australian market regulator says coordinated pump and dump social media posts "may" be market manipulation
- Japan Jibun Bank / Markit preliminary September Manufacturing PMI 51.2 vs. prior 52.7
- ICYMI - EIU says China's economy to become the world's largest (passing the US') early next decade
- National security law news ... this time its the US re chip shortage
- Japan CPI data for August: Headline CPI -0.4% y/y (expected -0.3%)
- UK data - GfK September consumer confidence -13 (vs. expected -8, prior -8)
- New Zealand trade balance for August NZD -2144mm (prior NZD -402m)
- Yellen and Powell to appear before US Congress (Senate) on Tuesday 28 September
- ICYMI - Norway's central bank rate hike Thursday
- More on the UK shortage of fuel delivery drivers - plans for army intervention
- ICYMI - The Bank of England considers rate hike before ending QE
- North Korea says its too early to declare an end to the Korean war
- Trade ideas thread - Friday 24 September 2021
- One for the TRY traders - Goldman Sachs forecasts further Turkish central bank rate cuts
- The major US indices close higher with the Dow leading the way
The sustained 'risk on' FX moves seen overnight through Europe and US timezone trade were retraced just a little during the session here in Asia on Friday. Its not like there were any reversals, just a little bit of back-filling, at this stage anyway.
AUD/USD initially moved back above 0.7310 but failed to carry on higher beyond that level and has subsequently backed off circa 0.7290 as I update. The pattern has been similar for EUR/USD, NZD/USD and cable. USD/CAD is up 30-odd points while USD/CHF and USD/JPY are not too much changed at all.
News flow has been very light. On the data docket, the main event was Japanese inflation data for August, with the 'core' rate hitting zero % y/y, its first time above a negative result in a year. There is often not a lot of encouragement in these figures for the Bank of Japan, where the target for core CPI is 2%, and I don't imagine zero percent triggered much celebration there.
Evergrande developments were keenly sought, but there have been none. A USD83m payment due Thursday has not been paid, bondholders are praying they get something in the 30 day 'grace period' that need to pass before a 'default' is recorded.
Regional stock markets took their cue from the rises in the US overnight, Japan up (partially a catch up move from its holiday Thursday) but China and HK are little changed.
USD/CAD:
